Mr. John Varghese reports

GOLDEN LEAF HOLDINGS ANNOUNCES OVERWHELMING APPROVAL OF EXTRAORDINARY RESOLUTIONS BY DEBENTURE HOLDERS

Golden Leaf Holdings Ltd.'s debenture holders approved extraordinary resolutions at the meeting of debenture holders held on Aug. 21, 2019, at 11 a.m. Eastern Time.

With 98-per-cent support, the debenture holders overwhelmingly approved the repayment of the principal amount of the debentures of $12,961,000 and accrued interest of $190,815 by an early conversion on Aug. 23, 2019, at six cents. The original maturity date of these debentures was Nov. 2, 2019.

As the debenture holders agreed to accelerate the settlement of the debentures, the agreement to extend the Chalice LLC earnout payment from Nov. 2, 2019, to May 2, 2022, became effective. The principal amount of the earnout payment due to Chalice LLC and its members is $9,527,350 (U.S.), of which $5-million (U.S.) is payable in cash and $4,527,350 (U.S.) is payable in the company's common shares.

"We're thankful that the debenture holders, and Chalice LLC and its members supported the management's proposals to settle and extend obligations," said interim chief executive officer John Varghese. "Now we have sufficient liquidity to meet our current obligations when due and to execute our strategic initiatives, which include expanding our offerings in California, Nevada and Canada."

About Golden Leaf Holdings Ltd.

Golden Leaf, a Canadian company with operations in multiple jurisdictions including Oregon, Nevada and Canada, is one of the largest cannabis oil and solution providers in North America, and a pioneer cannabis products company built around recognized brands. Golden Leaf cultivates, extracts, manufactures and distributes its products through its branded Chalice Farm retail dispensaries, as well as through third party dispensaries.

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